Market Highlights π‘ - 24 September 2024
Wall Street rose slightly after dovish comments from Federal Reserve officials; Chinese stock markets closed higher following an unexpected cut in short-term interest rates.
πΊπΈ S&P 500: 0.28% π $S&P 500(.SPX)$
πΊπΈ Nasdaq: 0.15% π $NASDAQ(.IXIC)$
πͺπΊ Stoxx 600: 0.41% π
π―π΅ Nikkei 225: Market closed
ππ° Hang Seng: -0.05% π $HSI(HSI)$
π¨π³ CSI 300: 0.37% π $CSI300(000300.SH)$
πΈπ¬ Straits Times: -0.21% π $Straits Times Index(STI.SI)$
US stock markets edged up, with the S&P 500 and Nasdaq rising by 0.3% and 0.2% respectively, as investors weighed Federal Reserve policymakers' comments against new economic data.
Due to a sharp drop in new orders, the S&P Global US Manufacturing PMI fell to 47.0 in September (forecast: 48.6), while the Services PMI remained strong at 55.4, in line with market expectations.
In September, the HCOB Eurozone Manufacturing PMI dropped to 44.8 (forecast: 45.7), as output fell by the largest margin in nine months, and the Services PMI also declined to 50.5 (forecast: 52.3) due to renewed weakness in the French economy.
Asia-Pacific markets were mixed, with the Hang Seng Index down 0.1%, ending a six-day rally, while the CSI 300 rose 0.4% following an unexpected cut in short-term interest rates by the Chinese central bank, raising hopes for stimulus.
π‘ Upcoming Events: π‘
The Reserve Bank of Australia will announce its interest rate decision, along with Germany's Ifo Business Climate Index and the US Consumer Confidence Index on Tuesday.
The US will release GDP quarterly rate, unemployment claims, and durable goods orders on Thursday.
Investors will look forward to the core PCE price index, personal income and spending, as well as the revised University of Michigan Consumer Sentiment and Inflation Expectations on Friday.
π‘ Things to Know Today: π‘
1. The People's Bank of China lowered the 14-day reverse repurchase rate by 10 basis points to 1.85% and injected 234.6 billion yuan of liquidity into the banking system through open market operations.
People's Bank of China
2. UK Chancellor Rachel Reeves promised on Monday that the UK would not return to austerity measures, but she noted that the road ahead would be steeper and more difficult than they anticipated, with a budget proposal expected next month.
Rachel Reeves
3. Chicago Fed President Austan Goolsbee stated, "I am satisfied with such a starting moveβa 50 basis point rate cut... As a dividing line, we are starting to consider both sides of the task more. If we want a soft landing, we cannot fall behind."
Austan Goolsbee
4. Atlanta Fed President Raphael Bostic remarked, "The progress on inflation and the cooling of the labor market are happening much faster than I imagined at the beginning of the summer. I now see a path to normalize monetary policy sooner than expected."
Raphael Bostic
5. Minneapolis Fed President Neel Kashkari said, "I am willing to take a big first step initially, and as we move forward, I expect that unless there are significant changes in data, we may take smaller steps."
Neel Kashkari
β Key Points:
Investors have been looking for more evidence that the recent rate cuts are not driven by an emergency mindset from the Federal Open Market Committee, but rather a precautionary easing policy due to the waning inflation risks.
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Based on the market highlights provided, here are the key points:
Wall Street experienced slight gains following dovish comments from Federal Reserve officials.
Chinese stock markets closed higher after an unexpected cut in short-term interest rates.
The S&P 500 rose by 0.28% and the Nasdaq increased by 0.15%.
In Europe, the Stoxx 600 rose by 0.41%.
The Nikkei 225 market was closed.
The Hang Seng Index declined by 0.05% after a six-day rally.
The CSI 300 increased by 0.37%.
The Straits Times Index in Singapore dropped by 0.21%.
In the US stock markets, the S&P 500 and Nasdaq both rose by 0.3% and 0.2% respectively. This was a result of investors weighing Federal Reserve policymakers' comments against new economic data. The S&P Global US Manufacturing PMI fell to 47.0 in September, while the Services PMI remained strong at 55.4.
In the Eurozone, the HCOB Eurozone Manufacturing PMI dropped to 44.8, and the Services PMI declined to 50.5 due to weakness in the French economy.
Asia-Pacific markets were mixed, with the Hang Seng Index decreasing by 0.1% after a six-day rally.
Some notable remarks from Federal Reserve officials include:
Fed Chair Rachel Reeves mentioned that the road ahead would be steeper and more difficult than anticipated.
Chicago Fed President Austan Goolsbee expressed satisfaction with a 50 basis point rate cut and emphasized the need for a soft landing.
Atlanta Fed President Raphael Bostic acknowledged the faster progress on inflation and cooling labor market conditions, suggesting the possibility of normalizing monetary policy sooner than expected.
Minneapolis Fed President Neel Kashkari indicated a willingness to take a big first step initially and potentially smaller steps in the future, depending on data changes.
These statements indicate that investors are seeking further evidence that recent rate cuts are not driven by an emergency mindset but rather a precautionary easing policy due to diminishing inflation risks.
Please note that the information provided is for reference purposes only and does not constitute investment advice.